Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Tax evasion
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- April 24, 2022 at 7:13 pm #654373
Question : business is liable if employes assist in tax evasion
Answer is false
Please assist why it is false, i think it is true if employe is helping company to reduce tax in giving bribe , business itself is also involved, please correct me.
April 24, 2022 at 9:27 pm #654376What a strange question! I don’t know where it’s from but I don’t recognise it!
If the employee is complicit in assisting the company to evade tax then, yes, I could see the employee as jointly liable
But your post doesn’t indicate whether or not the employee is assisting in helping THE BUSINESS to evade tax nor does it indicate whether the ‘business’ is itself a separate legal entity
Whatever, the business, not being a company and thus not being a separate legal entity, does not have a separate legal existence ie, the business is not ‘a person’ in the eyes of the law and thus cannot be held personally liable
Your post is unclear / non-specific as to whether this ‘business’ is or is not a limited liability company
If it is, and if the employee is a person with influence, then …. not necessarily is our employee guilty. It all depends on the specific facts
Does that help?
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